BitcoinCointelegraph.comFederal Reservegoldjerome powell

Bitcoin is ‘more a substitute for gold than the dollar’ — Fed Chair Powell

Jerome Powell reiterates his opinion about Bitcoin as a gold substitute, but a sell-off accompanies his other criticisms.
While Bitcoin (BTC) is too volatile to be money and “backed by nothing,” it could be a “substitute for gold,” says the Chair of the United States Federal Reserve.Speaking at an event hosted by the Bank for International Settlements (BIS) on March 22, Jerome Powell delivered frank comments in response to a question on cryptocurrency.Powell takes issue with Bitcoin’s backiAsked whether he thought Bitcoin and other cryptocurrencies posed a threat to financial stability, Powell wheeled out familiar arguments that long come from legacy finance figures.”Cryptoassets — we call them ‘cryptoassets’ — they’re highly volatile, see Bitcoin, and therefore not really useful as a store of value, and they’re not backed by anything,” he said.”They’re more of an asset for speculation, so they’re not particularly in use as a means of payment. It’s more a speculative asset, it’s essentially a substitute for gold rather than for the dollar.”Powell’s words provide some of the most direct Fed opinion on Bitcoin to go public in recent times, and build on a perspective offered in 2019. They also come weeks after incoming Treasury Secretary Janet Yellen made her misgivings about decentralized cryptocurrencies clear.As with Yellen, Powell appeared to spark a burst of negative market sentiment, with BTC/USD dropping by almost $1,000 following his response. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingviewFor all their disagreements, however, Powell and Bitcoin’s biggest proponents thus agree on …
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